Standard Oil has signed the final Purchase Contract for the 18,000 acres of Natural Gas / Coal Bed Methane Properties in West Virginia.
The West Virginia Purchase Contract is structured as follows: Standard Oil Company USA will purchase 100% of the Membership Shares of Kentucky River Energy, LLC who are the West Virginia Property owners. For this, the Members of Kentucky River Energy, LLC will receive $5.5 Million plus a 2% over-ride royalty on property production revenues. Included in this purchase package will be 15 million restricted SOCU.PK shares of common stock. This will not be a new issuance as the company already holds this stock issued and thus it will not affect the companies issued and outstanding position.
The West Virginia Properties alone are expected to deliver approximately USD $30 Million in revenues annually.
Mr. Ronald Brooks, Standard Oil Company USA's Chairman said, "This is step one of many steps Standard Oil Company USA has planned and will execute to realize shareholder value and corporate revenues."
Mr. Doug Terry, Chairman and Managing Partner of Kentucky River Energy commented, "This is an exciting day for Kentucky River Energy to be joining the Team of Standard Oil Company. We look forward to working together long into the future."
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